Swedish Match and Scandinavian Tobacco Merge to Form Giant Cigar Company

David Savona
Posted: October 4, 2010

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The deal includes Swedish Match’s Internet cigar retailer, Cigars International, but does not include the Stockholm company's U.S. mass-market cigar business. Swedish Match will receive about 30 million Euros ($41 million) in cash to compensate for difference in values between the merged assets.

The new company is the world’s No. 1 seller of pipe tobacco, according to Scandinavian Tobacco, with sales in more than 60 countries. Leading pipe tobacco brands include Erinmore, Borkum Riff, Clan, Half and Half, and W.Ø. Larsen. The new company’s machine-made cigar brands include Café Crème and Henri Wintermans.

Swedish Match has owned General Cigar since 2005, and El Credito Cigars (the former parent of La Gloria Cubana) since 1999. Scandinavian Tobacco acquired C.A.O. International Inc. from the Ozgener family in 2007.

Officials from General Cigar Co. had no further comment on the deal at this time. Look for much more information on the merger in the near future.

Note: an earlier version of this story erroneously referred to Cigars International as a unit of General Cigar. The company is a subsidiary of Swedish Match AB.

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Comments 1 comment(s)

Paul Johnson — MT PLEASANT, SC, UNITED STATES, — October 5, 2010 12:00pm ET

Lots of rumors circulating about whether or not (and how) CAO and General will merge at the corporate and/or distribution level. Has there been any official word? Personally I'd like to see CAO maintained as a separate entity. Consolidation can be good for business, but I think consumers win if there's more variety. There are already plenty of consumers who turn their noses up (justified or not) at the big brands to reach for the smaller producers), I'd hate to see yet another innovative brand lose its luster.

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